TIDMULVR
RNS Number : 9372N
Unilever PLC
04 February 2021
2020 FULL YEAR RESULTS
Performance highlights (unaudited)
Underlying performance GAAP measures
vs 2019 vs 2019
======== ======== ===================== ========= =======
Full Year
Underlying sales growth
(USG) 1.9% Turnover EUR50.7bn (2.4)%
Underlying operating
profit EUR9.4bn (5.8)% Operating profit EUR8.3bn (4.6)%
Underlying operating
margin 18.5% (60)bps Operating margin 16.4% (40)bps
Underlying earnings Diluted earnings per
per share EUR2.48 (2.4)% share EUR2.12 (0.9)%
Free cash flow EUR7.7bn EUR1.5bn Net profit EUR6.1bn 0.8%
Fourth Quarter
USG 3.5% Turnover EUR12.1bn (4.2)%
Quarterly dividend payable in March 2021 EUR0.4268 per share*
* See note 10 for more information on dividends.
Full year highlights
-- Underlying sales growth of 1.9%, with 1.6% volume and 0.3% price
-- Turnover decreased 2.4%, primarily driven by a negative
impact of 5.4% from currency related items
-- Underlying operating profit decreased 5.8%, but increased by
0.7% at constant exchange rates
-- Underlying earnings per share decreased 2.4%, but increased 4.1% at constant exchange rates
-- Diluted earnings per share of EUR2.12
-- Free cash flow up EUR1.5 billion to EUR7.7 billion,
reflecting our objective to protect cash
-- Dividend maintained through the year and increased in the
fourth quarter by 4% to EUR0.4268 per share
-- Unified the group legal structure under a single parent company
Alan Jope: Chief Executive Officer statement
" In a volatile and unpredictable year, we have demonstrated
Unilever's resilience and agility through the Covid-19 pandemic. I
would like to thank the Unilever team, whose dedication and hard
work has delivered a strong set of results under the most difficult
of circumstances.
Early in the year, we refocused the business on competitive
growth, and the delivery of profit and cash as the best way to
maximise value. We have delivered a step change in operational
excellence through our focus on the fundamentals of growth. As a
result, we are winning market share in over 60% of our business in
the last quarter, on the basis of measurable markets. The business
also generated underlying operating profit of EUR9.4 billion and
free cash flow of EUR7.7 billion, an increase of EUR1.5
billion.
We progressed our strategic agenda, building on our existing
sustainability commitments with ambitious new targets and actions,
most recently with our plans to help build a more equitable and
inclusive society. We completed the unification of our legal
structure under a single parent company and we continue to work on
separating out the tea business as we evolve our portfolio.
Today we are setting out our plans to drive long term growth
through the strategic choices we are making and outlining our
multi-year financial framework. While volatility and
unpredictability will continue throughout 2021, we begin the year
in good shape and are confident in our ability to adapt to a
rapidly changing environment ."
4 February 2021
FUTURE STRATEGY AND MULTI-YEAR FINANCIAL FRAMEWORK
As one of the world's largest consumer goods businesses,
Unilever serves consumers through our purposeful brands. Our vision
is to be the global leader in sustainable business. We will
demonstrate how our purpose-led future fit business model drives
superior performance, consistently delivering financial results in
the top third of our industry.
Our differentiating strengths
Unilever's success over the last 130 years and its future
success are shaped by the strengths that give us competitive
advantage. We have a powerful portfolio of leading category and
brand positions, with 2.5 billion people using our products every
day. We have a strong presence in the markets that will drive
global growth in the years ahead and our global leadership in
sustainability and commitment to sustainable business is widely
recognised.
Our strategic choices
We have made five strategic choices that we believe will support
our future growth and help us realise the potential of the
business.
1. Develop our portfolio into high growth spaces, positioning
Unilever in the categories that will drive future growth. This will
be our guiding strategy behind the choices we make for organic
investment and for our acquisitions and disposals.
2. Win with our brands as a force for good, powered by purpose
and innovation. Purpose-led brands have been at the heart of
Unilever throughout our history and purpose continues to dominate
our thinking and our portfolio today as it becomes even more
relevant to consumers. We will underpin our focus on purpose with
differentiated science and technology that ensures our brands and
products have superior quality and efficacy.
3. Accelerate in the USA, India and China and leverage our
emerging markets strength. Unilever has strong brand and category
leadership positions in the USA, India and China, with around 35%
of our turnover coming from those three countries alone, and we
believe we can bring sharper focus in those geographies and build
even stronger positions. There is also significant opportunity
beyond these markets and we will continue to build on our strong
operating businesses in the world's fastest growing economies.
4. Lead in the channels of the future. Position our business for
success in the channels of the future, focusing particularly on
e-commerce and digitising the distributed trade, underpinned by
advanced shopper insight as the consumer and customer landscape
continues to evolve.
5. Build a purpose-led, future-fit organisation and growth
culture. Driving growth through capacity, capability and culture,
while continuing to generate fuel for growth.
Multi-year financial framework
We will deliver long term value creation by continuing to evolve
our portfolio and driving earnings growth, a strong cash flow and a
growing dividend.
-- Underlying sales growth ahead of our markets, delivering USG in the range of 3% to 5%
-- Profit growth ahead of sales growth, on a comparable basis
-- Sustained strong cash flow over the long term
-- Savings of EUR2 billion per annum from our well-established
'Fuel for Growth' savings programmes
-- Restructuring investment of around EUR1 billion for 2021 and 2022; lower thereafter
-- ROIC in the mid-to-high teens
-- Net Debt to Underlying EBITDA at around 2x
FULL YEAR OPERATIONAL REVIEW: DIVISIONS
Fourth Quarter 2020 Full Year 2020
------------------------- -----------------------------------------
Turnover USG UVG UPG Turnover USG UVG UPG Change
in underlying
operating
(unaudited) margin
======================== ======== === === ===== ======== === === ===== ==============
EURbn % % % EURbn % % % bps
======== === === ===== ======== === === ===== ==============
Unilever 12.1 3.5 3.3 0.2 50.7 1.9 1.6 0.3 (60)
======== === === ===== ======== === === ===== ==============
Beauty & Personal Care 5.2 1.5 1.2 0.3 21.1 1.2 1.2 - (100)
Home Care 2.5 4.7 6.2 (1.4) 10.5 4.5 5.1 (0.6) (30)
Foods & Refreshment 4.4 5.4 4.3 1.0 19.1 1.3 0.1 1.1 (50)
======== === === ===== ======== === === ===== ==============
Our markets: The operating environment in our markets has been
volatile since the Covid-19 pandemic began in early 2020. In the
fourth quarter, we continued to see changes in consumer behaviour
and channel dynamics. Strict lock-downs in China and India led to
market declines in the first and second quarters respectively, with
both markets subsequently returning to growth during the year.
China has normalised in many categories, while economic activity in
India picked up particularly in the final quarter. In North America
and Europe, elevated demand for food consumed at home has continued
to drive market growth, whilst consumer usage of most beauty and
personal care categories remains subdued. In Latin America markets
were broadly flat for the year and several South East Asian markets
contracted.
Unilever overall performance: We focused on driving competitive
growth through execution against our five growth fundamentals,
responding with agility to changing dynamics driven by the
pandemic, and delivered a step up in competitive performance.
For the full year we grew underlying sales by 1.9%, with volumes
growing 1.6% and 0.3% from price. In the fourth quarter underlying
sales growth was 3.5%, with volumes of 3.3% and 0.2% from price.
Growth was driven by hand and home hygiene products, laundry and
in-home food and refreshments. Food solutions and out of home ice
cream sales declined, impacted by channel closures. As people
stayed at home and had fewer opportunities to socialise, they spent
less time on personal grooming which impacted sales in much of the
Beauty and Personal Care business, except for hygiene products
where demand was high. Category demand patterns varied throughout
the year and by market, driven by the differing status of lock-down
restrictions. E-commerce grew by 61%, as we captured demand in
online channels, and is now 9% of Unilever.
Emerging markets grew 1.2% as China and India returned to
growth, after strict lock-downs in the first half of the year.
China returned to growth in the second quarter as restrictions were
eased, delivering high single digit growth in the second half.
Latin America grew mid-single digit and Indonesia grew slightly,
though declined in the final quarter. Developed markets grew 2.9%,
led by strength in North American in-home foods. Europe declined
for the full year, but grew in the final quarter.
Turnover decreased 2.4%, including a positive impact of 1.2%
from acquisitions net of disposals and a negative impact of 5.4%
from currency movements.
Underlying operating profit was EUR9.4 billion, a decrease of
5.8% including a negative impact from currency of 6.5%. Underlying
operating margin decreased by 60bps. Gross margin reduced by 50bps,
including a negative impact of 9 0bps from additional costs needed
to adapt and run our supply chain and adverse mix from Covid-19.
While brand and marketing investment was conserved in the first
half during the early lock-down periods, we invested strongly
behind our brands in the second half and, for the full year, brand
and marketing investment was up EUR160 million at constant exchange
rates. Overheads increased by 10bps, reflecting adverse currency
mix and turnover growth.
We delivered free cash flow of EUR7.7 billion, an increase of
EUR1.5 billion driven by favourable working capital movement, as we
increased focus on receivables and re-phased capital expenditure in
light of Covid-19.
Beauty & Personal Care
Beauty & Personal Care underlying sales grew 1.2% driven by
volume, with flat price. Skin cleansing saw mid-teens volume-led
growth for the year, driven by the important role of hand hygiene
in combatting the spread of Covid-19. Our Lifebuoy hygiene brand
grew by over 50%, launching 'H is for Handwashing' an educational
campaign to teach children the importance of handwashing with soap.
Lock-downs and restricted living in our markets led to lower demand
for skin care, deodorants and hair care, which each saw volume and
price declines, most significantly in the second quarter. Skin care
declined high-single digit and deodorants declined mid-single
digit. In hair care, growth in wash and care partially offset a
decline in styling products, leading to a low-single digit decline
overall. Oral care grew with price growth more than offsetting
negative volumes driven by supply disruption related to lock-downs
in key markets in the second quarter. Our Prestige Beauty business
was impacted by door closures in the health and beauty channel, but
achieved a shift to over 50% e-commerce, overall declining
low-single digit.
Underlying operating margin in Beauty & Personal Care
declined by 100bps, with a reduction in gross margin driven by
adverse mix and additional costs related to Covid-19. This was
partially offset by a reduction in brand and marketing investment,
as we conserved spend during lock-down periods, before
significantly stepping up investment in the second half.
Home Care
Home Care underlying sales grew 4.5%, with 5.1% from volume and
negative pricing of 0.6%. O ur home and hygiene brands delivered
high-teens volume-led underlying sales growth. Demand for products
with germ-killing and antibacterial benefits has been elevated
throughout the year. Domestos grew over 25% as we launched the
brand in China and introduced spray and wipe formats. Our living
hygiene range of local brands grew over 50%, led by Lysoform's
educational campaigns in Italy. Within the fabric category, fabric
solutions declined slightly, driven by lower consumer prices as we
passed on some of the benefits of reduced commodity costs in the
second half of the year. Capsules and liquids continued to grow.
Low-single digit growth in fabric sensations was led by Indonesia
and by Turkey, where our relaunched Snuggle (Yumos) brand performed
well.
Underlying operating margin in Home Care declined by 30bps,
driven by increased brand and marketing investment as we invested
strongly behind our brands in the second half of the year.
Overheads and gross margin improved, helped by lower material
costs, despite Covid-19 related costs and negative price.
Foods & Refreshment
Foods & Refreshment underlying sales grew 1.3%, with 0.1%
from volume and 1.1% from price. Our retail foods business grew
double digit, as restricted living led to more in-home eating
occasions for consumers. Food solutions declined by 30% as out of
home channels remained closed for much of the year. Hellmann's grew
high-single digit, supported by its Stay In(spired) campaign, and
our plant-based brand The Vegetarian Butcher grew over 70%. Despite
significant decline in the out of home business due to channel
closures, ice cream grew slightly overall as we rapidly shifted
resources towards the in-home business. Ben and Jerry's performed
strongly, teaming up with Netflix on its new 'Netflix and Chill'd'
variant. Tea grew low single digit.
Underlying operating margin in Foods & Refreshment declined
by 50bps. The decline was driven by lower gross margin, due to
adverse mix impacts from out of home channel closures, costs
related to Covid-19 and higher commodity costs in the second half
of the year.
FULL YEAR OPERATIONAL REVIEW: GEOGRAPHICAL AREA
Fourth Quarter 2020 Full Year 2020
------------------------- -------------------------------------------
Turnover USG UVG UPG Turnover USG UVG UPG Change
in underlying
operating
(unaudited) margin
=============== ======== === === ===== ======== ===== === ===== ==============
EURbn % % % EURbn % % % bps
======== === === ===== ======== ===== === ===== ==============
Unilever 12.1 3.5 3.3 0.2 50.7 1.9 1.6 0.3 (60)
======== === === ===== ======== ===== === ===== ==============
Asia/AMET/RUB 5.6 2.6 2.1 0.5 23.4 0.4 - 0.4 (70)
The Americas 3.9 6.5 6.0 0.5 16.1 6.2 5.1 1.1 (20)
Europe 2.6 0.8 1.8 (1.1) 11.2 (1.0) 0.2 (1.2) (120)
======== === === ===== ======== ===== === ===== ==============
Fourth Quarter 2020 Full Year 2020
------------------- --------------------------
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
=================== -------- --- --- ------ -------- --- --- -----
EURbn % % % EURbn % % %
======== === === ====== ======== === === =====
Emerging markets 7.0 3.5 2.5 1.0 29.3 1.2 0.2 1.0
Developed markets 5.1 3.6 4.6 (1.0) 21.4 2.9 3.7 (0.8)
=================== ======== === === ====== ======== === === =====
North America 2.4 7.1 8.5 (1.3) 10.1 7.7 8.1 (0.4)
Latin America 1.5 5.8 2.8 2.9 6.0 4.1 0.9 3.2
======== === === ====== ======== === === =====
Asia/AMET/RUB
Underlying sales grew 0.4% with flat volume and 0.4% from price.
Volumes were impacted by lock-downs imposed across the region,
particularly in China and India. Restrictions were put in place in
China from January, with growth declining sharply in the first
quarter. China returned to growth in the second quarter as
restrictions were eased, with low-single digit underlying sales
growth for the full year and high-single digit in the fourth
quarter. India declined low-single digit, with a high-single digit
decline for the first half related to lock-down restrictions
partially offset by a return to growth in the third quarter and
further acceleration to high-single digit growth at the end of the
year. In South East Asia, Indonesia declined slightly in the fourth
quarter although grew slightly over the year, whilst the
Philippines and Thailand declined. Turkey saw growth in both volume
and price, driven by Home Care and ice cream.
Underlying operating margin declined by 70bps driven by negative
gross margin due to adverse mix and costs related to Covid-19. This
was partially offset by lower brand and marketing investment as we
conserved spend through lock-down periods in the first half of the
year, before significantly stepping up investment in the second
half.
The Americas
Underlying sales growth in North America was 7.7% with 8.1% from
volume and negative pricing of 0.4%. There was a negative impact of
2.4% from our food solutions and Prestige Beauty businesses which
were impacted by channel closures. Growth was driven by strong
consumer demand for in-home foods and ice cream, as well as hygiene
products. Foods & Refreshment excluding food solutions grew
16.1%, with strong performances from Knorr, Hellmann's and Ben
& Jerry's.
Latin America grew 4.1% with volume growth of 0.9% and positive
pricing of 3.2%. Brazil grew low-single digit for both the full
year and fourth quarter, with underlying volume and price growth.
Demand was stimulated for part of the year by emergency pandemic
cash payouts to citizens, which reduced during the fourth quarter.
Home and personal care categories drove volume growth in Argentina,
with Rexona's clinical aerosol deodorants offering performing well,
while Mexico declined low-single digit.
Underlying operating margin declined by 20bps. A decline in
gross margin from high material inflation as Latin American
currencies devalued, was partially offset by lower overheads.
Europe
Underlying sales declined 1.0% with positive volumes of 0.2% and
a decline of 1.2% from price, although growth returned in the final
quarter. A continued deflationary retail environment drove price
declines. Positive volumes were driven by Home Care, as hygiene
products saw double digit growth across most markets. Ice cream
sales declined, with out of home sales impacted by lock-downs and
reduced tourism, particularly in Southern Europe. The UK grew
mid-single digit, benefiting from increased demand for in home
eating and Home Care products, which more than offset negatively
impacted categories.
Underlying operating margin reduced by 120bps driven by gross
margin which was impacted by negative pricing and adverse mix.
ADDITIONAL COMMENTARY ON THE FINANCIAL STATEMENTS - FULL YEAR
Finance costs and tax
Net finance costs decreased EUR122 million to EUR505 million in
2020. The decrease was largely driven by lower cost of debt and
interest on tax credits in Brazil. This was partially offset by a
decrease in income on cash as interest rates fell. The interest
rate on average net debt fell to 2.2% from 2.5% in the prior
year.
The underlying effective tax rate was 23.0% compared with 25.5%
in 2019. The decrease was primarily driven by structural reductions
in Indian and Indonesian tax rates; tax settlements and other
one-off benefits; and replacement of Indian distribution tax with a
dividend withholding tax. The effective tax rate was 24.6% compared
with 27.9% in 2019.
Joint ventures, associates and other income from non-current
investments
Net profit from joint ventures and associates was EUR175
million, consistent with the prior year. Other income from
non-current investments was EUR3 million.
Earnings per share
Underlying earnings per share decreased to EUR2.48, including a
negative impact of 6.5% from currency. Constant underlying earnings
per share increased by 4.1%. The increase was mainly driven by
operating performance, lower tax and finance costs, partially
offset by an increase in profit attributable to minority interests
following the Horlicks acquisition in India.
Diluted earnings per share were down 0.9% at EUR2.12.
Free cash flow
Free cash flow was EUR7.7 billion in 2020 compared to EUR6.1
billion in the prior year. The improvement was led by favourable
working capital movements, as we increased our focus on
receivables. Capital expenditure declined following re-phased
investment in light of Covid-19, and there was a reduction in cash
tax paid partly driven by tax on disposal of Spreads in the prior
year.
Net debt
Closing net debt was EUR20.9 billion compared to EUR23.1 billion
as at 31 December 2019 driven by higher free cash flow and currency
impact. Net debt to underlying EBITDA was 1.8x as at 31 December
2020 versus 1.9x in the prior year.
Pensions
Pension assets net of liabilities were in surplus of EUR0.3
billion at 31 December 2020 versus a deficit of EUR0.2 billion at
the end of 2019. Strong positive investment performance was offset
by an increase in liabilities as interest rates fell over the year.
There were refinements in assumption methodologies to reflect
changes being made more generally by corporates and their advisers
in setting discount rates and future inflation rates, specifically
in the UK, which resulted in a EUR0.9 billion lower liability .
Return on invested capital
Return on invested capital was 18.0%, compared to 19.2% in the
prior year. This reflects higher goodwill and intangible assets
from the Horlicks acquisition and lower underlying operating profit
after tax.
Finance and liquidity
In 2020, we issued the following bonds:
-- 25 March 2020: EUR1,000 million fixed rate notes at 1.25% due
March 2025, and EUR1,000 million fixed rate notes at 1.75% due
March 2030
-- 14 September 2020: $500 million fixed rate notes at 0.375%
due September 2023, and $500 million fixed rate notes at 1.375% due
September 2030
In April 2020, EUR300 million 0.0% fixed rate notes matured and
were repaid. In May 2020, $800 million 1.8% fixed rate notes and
$150 million 5.15% fixed rate notes matured and were repaid. In
July 2020, $500 million 2.1% fixed rate notes matured and were
repaid. In August 2020, EUR750 million 1.75% fixed rate notes
matured and were repaid. In October 2020, a make-whole call was
exercised for $550 million 1.375% fixed rate notes due July 2021
and the notes were fully repaid.
As at 31 December 2020 Unilever had undrawn revolving 364-day
bilateral credit facilities in aggregate of $7,965 million with a
364-day term out.
COMPETITION INVESTIGATIONS
As previously disclosed, Unilever is involved in a number of
ongoing investigations and cases by national competition
authorities, including those within Italy, Greece, South Africa and
Turkey. These proceedings and investigations are at various stages
and concern a variety of product markets. Where appropriate,
provisions are made and contingent liabilities disclosed in
relation to such matters.
Ongoing compliance with competition laws is of key importance to
Unilever. It is Unilever's policy to co-operate fully with
competition authorities whenever questions or issues arise. In
addition, the Group continues to reinforce and enhance its internal
competition law training and compliance programme on an ongoing
basis .
NON-GAAP MEASURES
Certain discussions and analyses set out in this announcement
include measures which are not defined by generally accepted
accounting principles (GAAP) such as IFRS. We believe this
information, along with comparable GAAP measurements, is useful to
investors because it provides a basis for measuring our operating
performance, ability to retire debt and invest in new business
opportunities. Our management uses these financial measures, along
with the most directly comparable GAAP financial measures, in
evaluating our operating performance and value creation. Non-GAAP
financial measures should not be considered in isolation from, or
as a substitute for, financial information presented in compliance
with GAAP. Wherever appropriate and practical, we provide
reconciliations to relevant GAAP measures.
Unilever uses 'constant rate', and 'underlying' measures
primarily for internal performance analysis and targeting purposes.
We present certain items, percentages and movements, using constant
exchange rates, which exclude the impact of fluctuations in foreign
currency exchange rates. We calculate constant currency values by
translating both the current and the prior period local currency
amounts using the prior year average exchange rates into euro,
except for the local currency of entities that operate in
hyperinflationary economies. These currencies are translated into
euros using the prior year closing exchange rate before the
application of IAS 29. The table below shows exchange rate
movements in our key markets .
Annual Average rate in 2020 Annual Average rate in 2019
=============================== ===========================
Brazilian Real (EUR1 = BRL) 5.781 4.367
Chinese Yuan (EUR1 = CNY) 7.862 7.725
Indian Rupee (EUR1 = INR) 84.100 78.812
Indonesia Rupiah (EUR1 = IDR) 16557 15863
Philippine Peso (EUR1 = PHP) 56.447 58.112
UK Pound Sterling (EUR1 = GBP) 0.888 0.880
US Dollar (EUR1 = US $) 1.135 1.120
=========================== ===========================
(continued)
Underlying sales growth (USG)
Underlying sales growth (USG) refers to the increase in turnover
for the period, excluding any change in turnover resulting from
acquisitions, disposals, changes in currency and price growth in
excess of 26% in hyperinflationary economies. Inflation of 26% per
year compounded over three years is one of the key indicators
within IAS 29 to assess whether an economy is deemed to be
hyperinflationary. We believe this measure provides valuable
additional information on the underlying sales performance of the
business and is a key measure used internally. The impact of
acquisitions and disposals is excluded from USG for a period of 12
calendar months from the applicable closing date. Turnover from
acquired brands that are launched in countries where they were not
previously sold is included in USG as such turnover is more
attributable to our existing sales and distribution network than
the acquisition itself. The reconciliation of changes in the GAAP
measure turnover to USG is provided in notes 3 and 4.
Underlying price growth (UPG)
Underlying price growth (UPG) is part of USG and means, for the
applicable period, the increase in turnover attributable to changes
in prices during the period. UPG therefore excludes the impact to
USG due to (i) the volume of products sold; and (ii) the
composition of products sold during the period. In determining
changes in price we exclude the impact of price growth in excess of
26% per year in hyperinflationary economies as explained in USG
above. The measures and the related turnover GAAP measure are set
out in notes 3 and 4.
Underlying volume growth (UVG)
Underlying volume growth (UVG) is part of USG and means, for the
applicable period, the increase in turnover in such period
calculated as the sum of (i) the increase in turnover attributable
to the volume of products sold; and (ii) the increase in turnover
attributable to the composition of products sold during such
period. UVG therefore excludes any impact on USG due to changes in
prices. The measures and the related turnover GAAP measure are set
out in notes 3 and 4.
Non-underlying items
Several non-GAAP measures are adjusted to exclude items defined
as non-underlying due to their nature and/or frequency of
occurrence.
(--) Non-underlying items within operating profit are: gains or
losses on business disposals, acquisition and disposal related
costs, restructuring costs, impairments and other items within
operating profit classified here due to their nature and
frequency.
(--) Non-underlying items not in operating profit but within net
profit are: net monetary gain/(loss) arising from hyperinflationary
economies and significant and unusual items in net finance cost,
share of profit/(loss) of joint ventures and associates and
taxation.
(--) Non-underlying items are: both non-underlying items within
operating profit and those non-underlying items not in operating
profit but within net profit.
Underlying operating profit (UOP) and underlying operating
margin (UOM)
Underlying operating profit and underlying operating margin mean
operating profit and operating margin before the impact of
non-underlying items within operating profit. Underlying operating
profit represents our measure of segment profit or loss as it is
the primary measure used for making decisions about allocating
resources and assessing performance of the segments. The
reconciliation of operating profit to underlying operating profit
is as follows:
EUR million Full Year
(unaudited) 2020 2019
---------------------------------------------------------- ------ ------
Operating profit 8,303 8,708
Non-underlying items within operating profit (see note 2) 1,064 1,239
====== ======
Underlying operating profit 9,367 9,947
====== ======
Turnover 50,724 51,980
Operating margin (%) 16.4% 16.8%
Underlying operating margin (%) 18.5% 19.1%
====== ======
Underlying earnings before interest, taxation, depreciation and
amortisation (UEBITDA)
Underlying earnings before interest, taxation, depreciation and
amortisation means operating profit before the impact of
depreciation, amortisation and non-underlying items within
operating profit. We use UEBITDA in assessing our leverage level,
which is expressed as net debt / UEBITDA. The reconciliation of
operating profit to UEBITDA is as follows:
EUR million Full Year
--------------
(unaudited) 2020 2019
==================================================================================== ====== ======
Operating profit 8,303 8,708
Depreciation and amortisation 2,018 1,964
Non-underlying items within operating profit 1,064 1,239
====== ======
Underlying earnings before interest, taxes, depreciation and amortisation (UEBITDA) 11,385 11,911
====== ======
Underlying effective tax rate
The underlying effective tax rate is calculated by dividing
taxation excluding the tax impact of non-underlying items by profit
before tax excluding the impact of non-underlying items and share
of net (profit)/loss of joint ventures and associates. This measure
reflects the underlying tax rate in relation to profit before tax
excluding non-underlying items before tax and share of net
profit/(loss) of joint ventures and associates. Tax impact on
non-underlying items within operating profit is the sum of the tax
on each non-underlying item, based on the applicable country tax
rates and tax treatment. This is shown in the following table:
ME
EUR million Full Year
------------
(unaudited) 2020 2019
============================================================ ===== =====
Taxation 1,923 2,263
Tax impact of:
Non-underlying items within operating profit(a) 272 309
Non-underlying items not in operating profit but within
net profit(a) (146) (196)
===== =====
Taxation before tax impact of non-underlying items 2,049 2,376
===== =====
Profit before taxation 7,996 8,289
Non-underlying items within operating profit before
tax(a) 1,064 1,239
Non-underlying items not in operating profit but within
net profit before tax(b) 36 (32)
Share of net (profit)/loss of joint ventures and associates (175) (176)
===== =====
Profit before tax excluding non-underlying items before
tax and share of net profit/(loss) of joint ventures
and associates 8,921 9,320
===== =====
Underlying effective tax rate 23.0% 25.5%
===== =====
(a) See note 2.
(b) 2019 excludes EUR3 million gain on disposal of spreads
business by the joint venture in Portugal which is included in the
share of net profit/(loss) of joint ventures and associates line.
Including the gain, total non-underlying items not in operating
profit but within net profit before tax in 2019 was EUR35 million.
See note 2.
Underlying earnings per share
Underlying earnings per share (underlying EPS) is calculated as
underlying profit attributable to shareholders' equity divided by
the diluted average number of ordinary shares. In calculating
underlying profit attributable to shareholders' equity, net profit
attributable to shareholders' equity is adjusted to eliminate the
post-tax impact of non-underlying items. This measure reflects the
underlying earnings for each share unit of the Group. Refer to note
6 for reconciliation of net profit attributable to shareholders'
equity to underlying profit attributable to shareholders equity
.
Constant underlying EPS
Constant underlying earnings per share (constant underlying EPS)
is calculated as underlying profit attributable to shareholders'
equity at constant exchange rates and excluding the impact of both
translational hedges and price growth in excess of 26% per year in
hyperinflationary economies divided by the diluted average number
of ordinary shares. This measure reflects the underlying earnings
for each share unit of the Group in constant exchange rates.
The reconciliation of underlying profit attributable to
shareholders' equity to constant underlying earnings attributable
to shareholders' equity and the calculation of constant underlying
EPS is as follows:
EUR million Full Year
(unaudited) 2020 2019
=========================================================== ======= =======
Underlying profit attributable to shareholders' equity
(see note 6) 6,532 6,688
Impact of translation from current to constant exchange
rates and translational
hedges 472 2
Impact of price growth in excess of 26% per year in
hyperinflationary economies (31) -
======= =======
Constant underlying earnings attributable to shareholders'
equity 6,973 6,690
======= =======
Diluted average number of share units (millions of
units) 2,629.8 2,626.7
======= =======
Constant underlying EPS (EUR) 2.65 2.55
======= =======
Net debt
Net debt is a measure that provides valuable additional
information on the summary presentation of the Group's net
financial liabilities and is a measure in common use elsewhere. Net
debt is defined as the excess of total financial liabilities,
excluding trade payables and other current liabilities, over cash,
cash equivalents and other current financial assets, excluding
trade and other current receivables, and non-current financial
asset derivatives that relate to financial liabilities.
The reconciliation of total financial liabilities to net debt is
as follows:
EUR million As at As at
(unaudited) 31 December 31 December
==============================================================================
2020 2019
============================================================================== =========== ===========
Total financial liabilities (27,305) (28,257)
Current financial liabilities (4,461) (4,691)
Non-current financial liabilities (22,844) (23,566)
Cash and cash equivalents as per balance sheet 5,548 4,185
Cash and cash equivalents as per cash flow statement 5,475 4,116
Add bank overdrafts deducted therein 73 69
Other current financial assets 808 907
Non-current financial asset derivatives that relate to financial liabilities 21 114
=========== ===========
Net debt (20,928) (23,051)
=========== ===========
Free cash flow (FCF)
Within the Unilever Group, free cash flow (FCF) is defined as
cash flow from operating activities, less income taxes paid, net
capital expenditure and net interest payments. It does not
represent residual cash flows entirely available for discretionary
purposes; for example, the repayment of principal amounts borrowed
is not deducted from FCF. FCF reflects an additional way of viewing
our liquidity that we believe is useful to investors because it
represents cash flows that could be used for distribution of
dividends, repayment of debt or to fund our strategic initiatives,
including acquisitions, if any. - GAAP MEASURES (continued)
The reconciliation of cash flow from operating activities to FCF
is as follows:
EUR million Full Year
----------------
(unaudited) 2020 2019
================================================== ======= =======
Cash flow from operating activities 10,933 10,641
Income tax paid (1,875) (2,532)
Net capital expenditure (932) (1,429)
Net interest paid (455) (548)
======= =======
Free cash flow 7,671 6,132
======= =======
Net cash flow (used in)/from investing activities (1,481) (2,237)
Net cash flow (used in)/from financing activities (5,804) (4,667)
======= =======
Return on invested capital (ROIC)
Return on invested capital (ROIC) is a measure of the return
generated on capital invested by the Group. The measure provides a
guard rail for long-term value creation and encourages compounding
reinvestment within the business and discipline around acquisitions
with low returns and long payback. ROIC is calculated as underlying
operating profit after tax divided by the annual average of:
goodwill, intangible assets, property, plant and equipment, net
assets held for sale, inventories, trade and other current
receivables, and trade payables and other current liabilities.
EUR million Full Year
(unaudited) 2020 2019
============================================================= ======== ========
Operating profit 8,303 8,708
Non-underlying items within operating profit (see note 2) 1,064 1,239
======== ========
Underlying operating profit before tax 9,367 9,947
Tax on underlying operating profit(a) (2,154) (2,536)
Underlying operating profit after tax 7,213 7,411
======== ========
Goodwill 18,942 18,067
Intangible assets 15,999 12,962
Property, plant and equipment 10,558 12,062
Net assets held for sale 27 81
Inventories 4,462 4,164
Trade and other current receivables 4,939 6,695
Trade payables and other current liabilities (14,132) (14,768)
======== ========
Period-end invested capital 40,795 39,263
======== ========
Average invested capital for the period 40,029 38,639
======== ========
Return on invested capital 18.0% 19.2%
======== ========
(a) Tax on underlying operating profit is calculated as
underlying operating profit before tax multiplied by the underlying
effective tax rate of 23.0% (2019: 25.5%) which is shown on page
9.
CAUTIONARY STATEMENT
This announcement may contain forward-looking statements,
including 'forward-looking statements' within the meaning of the
United States Private Securities Litigation Reform Act of 1995.
Words such as 'will', 'aim', 'expects', 'anticipates', 'intends',
'looks', 'believes', 'vision', or the negative of these terms and
other similar expressions of future performance or results, and
their negatives, are intended to identify such forward-looking
statements. These forward-looking statements are based upon current
expectations and assumptions regarding anticipated developments and
other factors affecting the Unilever Group (the 'Group'). They are
not historical facts, nor are they guarantees of future
performance.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause actual
results to differ materially from those expressed or implied by
these forward-looking statements. Among other risks and
uncertainties, the material or principal factors which could cause
actual results to differ materially are: Unilever's global brands
not meeting consumer preferences; Unilever's ability to innovate
and remain competitive; Unilever's investment choices in its
portfolio management; the effect of climate change on Unilever's
business; Unilever's ability to find sustainable solutions to its
plastic packaging; significant changes or deterioration in customer
relationships; the recruitment and retention of talented employees;
disruptions in our supply chain and distribution; increases or
volatility in the cost of raw materials and commodities; the
production of safe and high quality products; secure and reliable
IT infrastructure; execution of acquisitions, divestitures and
business transformation projects; economic, social and political
risks and natural disasters; financial risks; failure to meet high
and ethical standards; and managing regulatory, tax and legal
matters. A number of these risks have increased as a result of the
current Covid-19 pandemic. These forward-looking statements speak
only as of the date of this document. Except as required by any
applicable law or regulation, the Group expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in the Group's expectations with regard thereto
or any change in events, conditions or circumstances on which any
such statement is based. Further details of potential risks and
uncertainties affecting the Group are described in the Group's
filings with the London Stock Exchange, Euronext Amsterdam and the
US Securities and Exchange Commission, including in the Annual
Report on Form 20-F 2019 and the Unilever Annual Report and
Accounts 2019 .
ENQUIRIES
Media: Media Relations Team Investors: Investor Relations
Team
+44 78 2527
3767
+44 77 7999
9683 lucila.zambrano@unilever.com
UK +31 10 217 JSibun@tulchangroup.com
or 4844 els-de.bruin@unilever.com
NL +31 62 375 marlous-den.bieman@unilever.c +44 20 7822 investor.relations@unilever.c
or 8385 om 6830 om
There will be a web cast of the results presentation available
at:
www.unilever.com/investor-relations/results-and-presentations/latest-results
INCOME STATEMENT
(unaudited)
EUR million Full Year
-----------------------------------
2020 2019 Increase/
========================================================= ======= =======
(Decrease)
========================================================= ======= ======= -----------------
Current Constant
rates rates
========================================================= ======= ======= ======= ========
Turnover 50,724 51,980 (2.4)% 3.5%
Operating profit 8,303 8,708 (4.6)% 2.2%
Which includes non-underlying items credits/(charges)
of (1,064) (1,239)
Net finance costs (505) (627)
Pensions and similar obligations (9) (30)
Finance income 232 224
Finance costs (728) (821)
Which includes non-underlying costs of (56) -
Non-underlying item net monetary gain/(loss)
arising from
hyperinflationary economies 20 32
Share of net profit/(loss) of joint ventures
and associates 175 176
Which includes non-underlying item credits/(charges)
of - 3
Other income/(loss) from non-current
investments and associates 3 -
Profit before taxation 7,996 8,289 (3.5)% 3.9%
Taxation (1,923) (2,263)
Which includes tax impact of non-underlying
items of 126 113
Net profit 6,073 6,026 0.8% 7.6%
Attributable to:
======= ======= ======= ========
Non-controlling interests 492 401
Shareholders' equity 5,581 5,625 (0.8)% 6.1%
======= ======= ======= ========
Combined earnings per share
========================================================= ======= ======= ======= ========
Basic earnings per share (euros) 2.13 2.15 (0.9)% 5.9%
Diluted earnings per share (euros) 2.12 2.14 (0.9)% 5.9%
======= ======= ======= ========
STATEMENT OF COMPREHENSIVE INCOME
(unaudited)
EUR million Full Year
2020 2019
========================================================= ======= =====
Net profit 6,073 6,026
Other comprehensive income
Items that will not be reclassified to profit or loss,
net of tax:
Gains/(losses) on equity instruments measured at fair
value through other comprehensive income 78 29
Remeasurement of defined benefit pension plans 215 353
Items that may be reclassified subsequently to profit
or loss, net of tax:
Gains/(losses) on cash flow hedges 60 176
Currency retranslation gains/(losses) (2,590) (15)
Total comprehensive income 3,836 6,569
======= =====
Attributable to:
Non-controlling interests 286 407
Shareholders' equity 3,550 6,162
======= =====
STATEMENT OF CHANGES IN EQUITY
(unaudited)
EUR million Called Share Unification Other Retained Total Non- Total
up share premium reserve reserves profit controlling equity
capital account interest
======================== ========== ========= ============ ========== ========= ======= =============
1 January 2019 464 129 - (15,218) 25,984 11,359 720 12,079
========== ========= ============ ========== ========= ======= ============= ========
Profit or loss for the
period - - - - 5,625 5,625 401 6,026
Other comprehensive
income,
net of tax:
Gains/(losses) on:
Equity instruments - - - 25 - 25 4 29
Cash flow hedges - - - 176 - 176 - 176
Remeasurements of
defined
benefit pension plans - - - - 352 352 1 353
Currency retranslation
gains/(losses) - - - (18) 2 (16) 1 (15)
========== ========= ============ ========== ========= ======= ============= ========
Total comprehensive
income - - - 183 5,979 6,162 407 6,569
Dividends on ordinary
capital - - - - (4,223) (4,223) - (4,223)
Cancellation of
treasury
shares(a) (44) - - 9,416 (9,372) - - -
Other movements in
treasury
shares(b) - - - 64 (231) (167) - (167)
Share-based payment
credit(c) - - - - 151 151 - 151
Dividends paid to
non-controlling
interests - - - - - - (435) (435)
Currency retranslation
gains/(losses) net of
tax - 5 - - - 5 - 5
Hedging gain/(loss)
transferred
to non-financial
assets - - - 32 - 32 - 32
Other movements in
equity - - - (51) (76) (127) 2 (125)
========== ========= ============ ========== ========= ======= ============= ========
31 December 2019 420 134 - (5,574) 18,212 13,192 694 13,886
Profit or loss for the
period - - - - 5,581 5,581 492 6,073
Other comprehensive
income,
net of tax:
Gains/(losses) on:
Equity instruments - - - 68 - 68 10 78
Cash flow hedges - - - 62 - 62 (2) 60
Remeasurements of
defined
benefit pension plans - - - - 217 217 (2) 215
Currency retranslation
gains/(losses) - - - (2,356) (22) (2,378) (212) (2,590)
========== ========= ============ ========== ========= ======= ============= ========
Total comprehensive
income - - - (2,226) 5,776 3,550 286 3,836
Dividends on ordinary
capital - - - - (4,300) (4,300) - (4,300)
Issue of PLC ordinary
shares as part of
Unification(d) 51 - - - (51) - - -
Cancellation of NV
ordinary
shares as part of
Unification(d) (233) (20) - - 253 - - -
Other effects of (73,
Unification(e) (146) 73,364 364) 132 14 - - -
Movements in treasury
shares(b) - - - 220 (158) 62 - 62
Share-based payment
credit(c) - - - - 108 108 - 108
Dividends paid to
non-controlling
interests - - - - - - (559) (559)
Currency retranslation
gains/(losses) net of
tax - (6) - - - (6) - (6)
Hedging gain/(loss)
transferred
to non-financial
assets - - - 10 - 10 2 12
Net gain arising from
Horlicks
acquisition(f) - - - - 2,930 2,930 1,918 4,848
Other movements in
equity(g) - - - (44) (236) (280) 48 (232)
========== ========= ============ ========== ========= ======= ============= ========
31 December 2020 92 73,472 (73,364) (7,482) 22,548 15,266 2,389 17,655
========== ========= ============ ========== ========= ======= ============= ========
(a) During 2019 254,012,896 NV ordinary shares and 18,660,634
PLC ordinary shares were cancelled. The amount paid to repurchase
these shares was initially recognised in other reserves and is
transferred to retained profit on cancellation.
(b) Includes purchases and sales of treasury shares, and
transfer from treasury shares to retained profit of share-settled
schemes arising from prior years and differences between exercise
and grant price of share options.
(c) The share-based payment credit relates to the non-cash
charge recorded against operating profit in respect of the fair
value of share options and awards granted to employees.
(d) As part of Unification (see note 1 for further details), the
shareholders of NV were issued new PLC ordinary shares, and all NV
shares in issue were cancelled. The net impact is recognized in
retained profit.
(e) Includes the reduction of PLC's share capital following the
cessation of the Equalisation Agreement. Prior to Unification, a
conversion rate of GBP1= EUR 5.143 was used in accordance with the
Equalisation Agreement to translate PLC's share capital. Following
Unification, PLC's share capital has been translated using the
exchange rate at the date of Unification. To reflect the legal
share capital of the PLC company, an increase to share premium of
EUR73,364 million and a debit unification reserve for the same
amount have been recorded as there is no change in the net assets
of the group. This debit is not a loss as a matter of law.
(f) Consideration for the Main Horlicks Acquisition included the
issuance of shares in a group subsidiary, Hindustan Unilever
Limited, which resulted in a net gain being recognised within
equity. See note 8 for further details.
(g) Includes EUR163 million paid for purchase of the
non-controlling interest in Unilever Malaysia.
BALANCE SHEET
(unaudited)
EUR million As at As at
31 December 31 December
2020 2019
Non-current assets
Goodwill 18,942 18,067
Intangible assets 15,999 12,962
Property, plant and equipment 10,558 12,062
Pension asset for funded schemes in surplus 2,722 2,422
Deferred tax assets 1,474 1,336
Financial assets 876 874
Other non-current assets 931 653
============ =============
51,502 48,376
============ =============
Current assets
Inventories 4,462 4,164
Trade and other current receivables 4,939 6,695
Current tax assets 372 397
Cash and cash equivalents 5,548 4,185
Other financial assets 808 907
Assets held for sale 28 82
============ =============
16,157 16,430
============ =============
Total assets 67,659 64,806
============ =============
Current liabilities
Financial liabilities 4,461 4,691
Trade payables and other current liabilities 14,132 14,768
Current tax liabilities 1,451 898
Provisions 547 620
Liabilities held for sale 1 1
============ =============
20,592 20,978
============ =============
Non-current liabilities
Financial liabilities 22,844 23,566
Non-current tax liabilities 149 182
Pensions and post-retirement healthcare liabilities:
Funded schemes in deficit 1,109 1,157
Unfunded schemes 1,326 1,461
Provisions 583 664
Deferred tax liabilities 3,166 2,573
Other non-current liabilities 235 339
============ =============
29,412 29,942
============ =============
Total liabilities 50,004 50,920
============ =============
Equity
Shareholders' equity 15,266 13,192
Non-controlling interests 2,389 694
============ =============
Total equity 17,655 13,886
============ =============
Total liabilities and equity 67,659 64,806
============ =============
CASH FLOW STATEMENT
(unaudited)
EUR million Full Year
2020 2019
======================================================== ======= =======
Net profit 6,073 6,026
Taxation 1,923 2,263
Share of net (profit)/loss of joint ventures/associates
and other (income)/loss from non-current investments
and associates (178) (176)
Net monetary (gain)/loss arising from hyperinflationary
economies (20) (32)
Net finance costs 505 627
======= =======
Operating profit 8,303 8,708
======= =======
Depreciation, amortisation and impairment 2,018 1,982
Changes in working capital 680 (9)
Pensions and similar obligations less payments (182) (260)
Provisions less payments (53) 7
Elimination of (profits)/losses on disposals 60 60
Non-cash charge for share-based compensation 108 151
Other adjustments (1) 2
======= =======
Cash flow from operating activities 10,933 10,641
======= =======
Income tax paid (1,875) (2,532)
======= =======
Net cash flow from operating activities 9,058 8,109
======= =======
Interest received 169 146
Net capital expenditure (932) (1,429)
Other acquisitions and disposals (1,387) (945)
Other investing activities 669 (9)
Net cash flow (used in)/from investing activities (1,481) (2,237)
Dividends paid on ordinary share capital (4,279) (4,209)
Interest paid (624) (694)
Change in financial liabilities (181) 901
Other movements on treasury shares - (201)
Other financing activities (720) (464)
Net cash flow (used in)/from financing activities (5,804) (4,667)
Net increase/(decrease) in cash and cash equivalents 1,773 1, 205
======= =======
Cash and cash equivalents at the beginning of the
period 4,116 3,090
Effect of foreign exchange rate changes (414) ( 179 )
Cash and cash equivalents at the end of the period 5,475 4,116
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
(unaudited)
1 ACCOUNTING INFORMATION AND POLICIES
The accounting policies adopted are the same as those which were
applied for the previous financial year, except as set out below.
The condensed preliminary financial statements are based on
international accounting standards in conformity with the
requirements of the Companies Act 2006, international financial
reporting standards (IFRS) adopted pursuant to Regulation (EC) No
1606/2002 as it applies in the European Union and IFRS as issued by
the International Accounting Standards Board.
The condensed financial statements are shown at current exchange
rates, while percentage year-on-year changes are shown at both
current and constant exchange rates to facilitate comparison. The
income statement on page 13, the statement of comprehensive income
on page 13, the statement of changes in equity on page 14 and the
cash flow statement on page 16 are translated at exchange rates
current in each period. The balance sheet on page 15 is translated
at period-end rates of exchange.
The condensed financial statements attached do not constitute
the full financial statements within the meaning of Section 434 of
the UK Companies Act 2006, which will be finalised and delivered to
the Registrar of Companies in due course. Full accounts for
Unilever for the year ended 31 December 2019 have been delivered to
the Registrar of Companies; the auditors' reports on these accounts
were unqualified, did not include a reference to any matters by way
of emphasis and did not contain a statement under Section 498 (2)
or Section 498 (3) of the UK Companies Act 2006.
Unification
On 29 November 2020, the Group reorganised under Unilever PLC
("PLC") as its single parent company. This reorganisation is
referred to as "Unification" in the condensed financial
statements.
Prior to 29 November 2020, the Group operated with two parent
companies, Unilever N.V. ("NV") and Unilever PLC ("PLC"), who
together with the group companies operated as a single economic
entity. NV and PLC had the same Directors and were linked by a
series of agreements, including an Equalisation Agreement, which
were designed so that the positions of the shareholders of both
companies were as closely as possible as if they held shares in a
single company. NV and PLC together formed a single reporting
entity for the purposes of presenting consolidated financial
statements and group companies included in the consolidation
included those companies controlled by NV or PLC.
Following Unification, all group companies are now controlled
solely by PLC. There is no change to the companies included in the
group as a result of Unification, other than NV ceasing to
exist.
Unification was implemented through a Cross-Border Merger, as a
result of which (i) PLC acquired all of the assets, liabilities and
legal relationships of NV by universal succession of title; (ii) NV
was dissolved; and (iii) PLC issued and allotted shares in its
capital to former NV shareholders, except for a very small number
of NV shareholders that chose to receive cash instead of PLC
shares. The shareholders of NV received one new PLC share in
exchange for each NV share held, consistent with the 1 to 1
equalisation ratio as set out in the Equalisation Agreement.
The transfer of assets and liabilities from NV to PLC that
occurred as part of the Cross-Border Merger was within the Group so
there is no revaluation of these assets and liabilities in the
consolidated financial statements. The only impact to the
consolidated balance sheet from Unification is within equity due to
the cancellation of NV shares and issuance of PLC shares.
Basis of consolidation
Group companies included in the consolidated financial
statements for 2020 are PLC and all subsidiary undertakings, which
are those entities controlled by PLC. Control exists when the Group
has the power to direct the activities of an entity so as to affect
the return on investment.
Due to the operational and contractual arrangements referred to
above, prior to Unification NV and PLC formed a single reporting
entity for the purposes of presenting consolidated financial
statements. Accordingly, group companies included in the
comparative information provided in the consolidated financial
statements, for 2019, are PLC and NV and those companies controlled
by NV or PLC during those years.
The net assets and results of acquired businesses are included
in the consolidated financial statements from their respective
dates of acquisition, being the date on which the Group obtains
control. As noted above, Unification did not cause the acquisition
by the Group of any new business. All companies controlled by NV
before Unification are included in the group consolidation for the
year ending 31 December 2020 and they were already group companies
prior to Unification.
Intra-group transactions and balances are eliminated.
New accounting standards
Interest Rate Benchmark Reform - Amendments to IFRS 9, IAS 39
and IFRS 7
The Group has adopted the amendments that modify specific hedge
accounting requirements to allow entities to continue to forecast
future cash flows assuming that the interest rate benchmark will
continue despite ongoing reviews of interest rate benchmark reform.
As a result, there is no requirement for an entity to discontinue
hedge relationships or to reassess the economic relationships
between hedged items and hedging instruments as a result of the
uncertainties of the interest rate benchmark reform. The Group does
not have material derivatives that refer to an interest rate
benchmark so these amendments do not have a material impact on
Unilever.
2 SIGNIFICANT ITEMS WITHIN THE INCOME STATEMENT
Non-underlying items
These include non-underlying items within operating profit and
non-underlying items not in operating profit but within net
profit:
-- Non-underlying items within operating profit are gains or
losses on business disposals, acquisition and disposal related
costs, restructuring costs, impairment and other items within
operating profit classified here due to their nature and
frequency.
-- Non-underlying items not in operating profit but within net
profit are net monetary gain/(loss) arising from hyperinflationary
economies and significant and unusual items in net finance cost,
share of profit/(loss) of joint ventures and associates and
taxation.
Restructuring costs are charges associated with activities
planned by management that significantly change either the scope of
the business or the manner in which it is conducted.
EUR million Full Year
----------------
2020 2019
============================================================== ======= =======
Acquisition and disposal-related credits/(costs) (69) (132)
Gain/(loss) on disposal of group companies(a) 8 70
Restructuring costs(b) (916) (1,159)
Impairments(c) - (18)
Other(d) (87) -
======= =======
Non-underlying items within operating profit before
tax (1,064) (1,239)
Tax on non-underlying items within operating profit 272 309
======= =======
Non-underlying items within operating profit after
tax (792) (930)
============================================================== ======= =======
Share of gain on disposal of spreads business in Portugal
joint venture - 3
Interest related to the UK tax audit of intangible
income and centralised services (56) -
Net monetary gain arising from hyperinflationary economies 20 32
======= =======
Non-underlying items not in operating profit but within
net profit before tax ( 36 ) 35
Tax impact of non-underlying items not in operating
profit but within net profit:
Taxes related to share buyback as part of Unification (30) -
Taxes related to the UK tax audit of intangible income
and centralised services (53) -
Taxes related to the reorganisation of our European
business (58) (175)
Hyperinflation adjustment for Argentina deferred tax (5) (21)
======= =======
Non-underlying items not in operating profit but within
net profit after tax (182) (161)
============================================================== ======= =======
Non-underlying items after tax(e) (974) (1,091)
============================================================== ======= =======
Attributable to:
============================================================== ======= =======
Non-controlling interests (23) (28)
Shareholders' equity (951) (1,063)
======= =======
(a) 2020 gain relates to a laundry bar business disposal. 2019
includes a gain of EUR57 million relating to the disposal of
Alsa.
(b) Restructuring costs are comprised of various supply chain
optimisation projects and organisational change programmes across
markets.
(c) 2019 includes a charge of EUR18 million relating to an
impairment of goodwill for a local business classified to held for
sale.
(d) 2020 includes a charge of EUR87 million for litigation
matters in relation to investigations by national competition
authorities including those within Turkey and France.
(e) Non-underlying items after tax is calculated as
non-underlying items within operating profit after tax plus
non-underlying items not in operating profit but within net profit
after tax.
3 SEGMENT INFORMATION - DIVISIONS
Fourth Quarter Beauty & Home Foods & Total
Personal Care Refreshment
Care
Turnover (EUR million)
2019 5,588 2,724 4,326 12,638
2020 5,176 2,547 4,379 12,102
Change (%) (7.4) (6.5) 1.2 (4.2)
Impact of:
Acquisitions (%) 0.8 - 3.8 1.7
Disposals (%) - (0.3) (0.4) (0.2)
Currency-related items (%), of
which: (9.5) (10.5) (7.1) (8.7)
Exchange rates changes (%) (9.6) (10.7) (8.1) (9.2)
Extreme price growth in hyperinflationary
markets* (%) 0.1 0.3 1.0 0.5
Underlying sales growth (%) 1.5 4.7 5.4 3.5
============================================ ========= ====== ============= ======
Price* (%) 0.3 (1.4) 1.0 0.2
Volume (%) 1.2 6.2 4.3 3.3
============================================ ========= ====== ============= ======
Full Year Beauty & Home Foods & Total
Personal Care Refreshment
Care
------
Turnover (EUR million)
2019 21,868 10,825 19,287 51,980
2020 21,124 10,460 19,140 50,724
Change (%) (3.4) (3.4) (0.8) (2.4)
Impact of:
Acquisitions (%) 0.9 0.2 2.7 1.4
Disposals (%) - (0.2) (0.4) (0.2)
Currency-related items (%), of
which: (5.4) (7.5) (4.2) (5.4)
Exchange rate changes (%) (5.6) (7.8) (4.6) (5.7)
Extreme price growth in hyperinflationary
markets* (%) 0.2 0.3 0.5 0.3
Underlying sales growth (%) 1.2 4.5 1.3 1.9
============================================ ========= ====== ============= ======
Price* (%) - (0.6) 1.1 0.3
Volume (%) 1.2 5.1 0.1 1.6
============================================ ========= ====== ============= ======
Operating profit (EUR million)
2019 4,520 1,377 2,811 8,708
2020 4,311 1,243 2,749 8,303
Underlying operating profit (EUR
million)
2019 4,960 1,605 3,382 9,947
2020 4,591 1,519 3,257 9,367
Operating margin (%)
2019 20.7 12.7 14.6 16.8
2020 20.4 11.9 14.4 16.4
Underlying operating margin (%)
2019 22.7 14.8 17.5 19.1
2020 21.7 14.5 17.0 18.5
============================================ ========= ====== ============= ======
* Underlying price growth in excess of 26% per year in
hyperinflationary economies has been excluded when calculating the
price growth in the tables above, and an equal and opposite amount
is shown as extreme price growth in hyperinflationary markets.
Turnover growth is made up of distinct individual growth
components namely underlying sales, currency impact, acquisitions
and disposals. Turnover growth is arrived at by multiplying these
individual components on a compounded basis as there is a currency
impact on each of the other components. Accordingly, turnover
growth is more than just the sum of the individual components.
Underlying operating profit represents our measure of segment
profit or loss as it is the primary measure used for the purpose of
making decisions about allocating resources and assessing
performance of segments. Underlying operating margin is calculated
as underlying operating profit divided by turnover.
4 SEGMENT INFORMATION - GEOGRAPHICAL AREA
Fourth Quarter Asia / The Europe Total
AMET / Americas
RUB
======= ========= ======
Turnover (EUR million)
2019 5,866 4,181 2,591 12,638
2020 5,649 3,884 2,569 12,102
Change (%) (3.7) (7.1) (0.8) (4.2)
Impact of:
Acquisitions (%) 3.0 1.0 - 1.7
Disposals (%) (0.2) (0.3) (0.1) (0.2)
Currency-related items (%) ,
of which: (8.6) (13.5) (1.5) (8.7)
Exchange rates changes (%) (8.8) (14.3) (1.5) (9.2)
Extreme price growth in hyperinflationary
markets* (%) 0.3 1.0 - 0.5
Underlying sales growth (%) 2.6 6.5 0.8 3.5
============================================ ======= ========= ====== ======
Price* (%) 0.5 0.5 (1.1) 0.2
Volume (%) 2.1 6.0 1.8 3.3
============================================ ======= ========= ====== ======
Full Year Asia / The Europe Total
AMET / Americas
RUB
============================================ ======= ========= ====== ======
Turnover (EUR million)
2019 24,129 16,482 11,369 51,980
2020 23,440 16,080 11,204 50,724
Change (%) (2.9) (2.4) (1.5) (2.4)
Impact of:
Acquisitions (%) 2.2 1.0 0.3 1.4
Disposals (%) (0.1) (0.2) (0.2) (0.2)
Currency- related items (%),
of which: (5.1) (8.9) (0.5) (5.4)
Exchange rates changes (%) (5.3) (9.5) (0.5) (5.7)
Extreme price growth in hyperinflationary
markets* (%) 0.2 0.7 - 0.3
Underlying sales growth (%) 0.4 6.2 (1.0) 1.9
============================================ ======= ========= ====== ======
Price* (%) 0.4 1.1 (1.2) 0.3
Volume (%) - 5.1 0.2 1.6
============================================ ======= ========= ====== ======
Operating profit (EUR million)
2019 4,418 2,683 1,607 8,708
2020 4,137 2,723 1,443 8,303
Underlying operating profit (EUR
million)
2019 4,857 3,078 2,012 9,947
2020 4,546 2,973 1,848 9,367
Operating margin (%)
2019 18.3 16.3 14.1 16.8
2020 17.6 16.9 12.9 16.4
Underlying operating margin (%)
2019 20.1 18.7 17.7 19.1
2020 19.4 18.5 16.5 18.5
============================================ ======= ========= ====== ======
* Underlying price growth in excess of 26% per year in
hyperinflationary economies has been excluded when calculating the
price growth in the tables above, and an equal and opposite amount
is shown as extreme price growth in hyperinflationary markets.
5 TAXATION
The effective tax rate for 2020 is 24.6%, compared with the 2019
rate of 27.9%. The decrease was primarily driven by structural
reductions in Indian and Indonesian tax rates; tax settlements and
other one-off benefits; and replacement of Indian distribution tax
with a dividend withholding tax.
Tax effects of components of other comprehensive income were as
follows:
EUR million Full Year 2020 Full Year 2019
Before Tax (charge)/ After Before Tax (charge)/ After
tax credit tax tax credit tax
======================================= ======= ============= ======= ====== ============= =====
Gains/(losses) on:
Equity instruments at fair value
through other
comprehensive income 77 1 78 35 (6) 29
Cash flow hedges 87 (27) 60 198 (22) 176
Remeasurements of defined benefit
pension plans 250 (35) 215 381 (28) 353
Currency retranslation gains/(losses) (2,646) 56 (2,590) 6 (21) (15)
Other comprehensive income (2,232) (5) (2,237) 620 (77) 543
======= ============= ======= ====== =============
6 COMBINED EARNINGS PER SHARE
The combined earnings per share calculations are based on the
average number of share units representing the combined ordinary
shares of NV and PLC in issue during the period, less the average
number of shares held as treasury shares.
In calculating diluted earnings per share and underlying
earnings per share, a number of adjustments are made to the number
of shares, principally the exercise of share plans by
employees.
Earnings per share for total operations for the twelve months
were calculated as follows:
2020 2019
=========================================================================================== =======
Combined EPS - Basic
======= =======
Net profit attributable to shareholders' equity (EUR million) 5,581 5,625
Average number of shares (millions of share units)(a) 2,620.3 2,616.8
Combined EPS - basic (EUR) 2.13 2.15
======= =======
Combined EPS - Diluted
=========================================================================================== ======= =======
Net profit attributable to shareholders' equity (EUR million) 5,581 5,625
Adjusted average number of shares (millions of share units)(a) 2,629.8 2,626.7
Combined EPS - diluted (EUR) 2.12 2.14
======= =======
Underlying EPS
=========================================================================================== ======= =======
Net profit attributable to shareholders' equity (EUR million) 5,581 5,625
Post tax impact of non-underlying items attributable to shareholders' equity (see note 2) 951 1,063
======= =======
Underlying profit attributable to shareholders' equity 6,532 6,688
Adjusted average number of shares (millions of share units) (a) 2,629.8 2,626.7
Underlying EPS - diluted (EUR) 2.48 2.55
======= =======
(a) In the calculation of the weighted average number of share
units, NV shares are included only for the period they were issued,
until 29 November 2020. Following Unification (see note 1 for more
information on Unification), all NV shares were cancelled and the
shareholders of NV were issued PLC ordinary shares on a 1:1 ratio.
Accordingly, there is no significant impact on the calculation of
average number of share units.
In calculating underlying earnings per share, net profit
attributable to shareholders' equity is adjusted to eliminate the
post-tax impact of non-underlying items.
During the period the following movements in shares have taken
place:
Millions
=======================================================
Number of shares at 31 December 2019 (net of treasury
shares) 2,616.8
Net movements in shares under incentive schemes 5.2
======================================================== ========
Number of shares at 31 December 2020 2,622.0
======================================================== ========
7 ORDINARY SHARE CAPITAL
Following implementation of Unification (see note 1 for more
information on Unification), PLC is now the single parent company
of the Unilever Group. Under the terms of Unification, all the NV
ordinary shares were cancelled and NV shareholders received one new
PLC ordinary share in exchange for each NV share owned. Unification
resulted in the issue of 1,460,713,122 new PLC ordinary shares. As
at 31 December 2020 2,629,243,772 PLC ordinary shares were in issue
and no NV ordinary shares were in issue.
8 ACQUISITIONS AND DISPOSALS
In 2020 the Group completed the business acquisitions and
disposals as listed below. In each case 100% of the businesses were
acquired unless stated otherwise. Total consideration for 2020
acquisitions is EUR6,337 million (2019: EUR1,167 million for
acquisitions completed during that year). Total consideration for
2020 disposals is EUR35 million (2019: EUR169 million for disposals
completed during that year).
Deal completion Acquired/Disposed business
date
1 April 2020 Acquired the health food drinks business of GlaxoSmithKline
plc in India and 20 other predominantly Asian markets ("the
Main Horlicks Acquisition"). The acquisition added leading
brands such as Horlicks and Boost in certain markets, increasing
Unilever's presence in functional nutrition. As a significant
acquisition for the Group, further details are disclosed
below.
================= ====================================================================
25 June 2020 Acquired Vwash, a leading intimate hygiene business in
India. The acquisition complements our beauty and personal
care portfolio and increase our presence in fast-growing
segments in India.
================= ====================================================================
30 June 2020 The Group acquired 82% of GlaxoSmithKline Bangladesh Limited,
a health food drink business in Bangladesh. The Bangladesh
Horlicks Acquisition was a separate transaction to the
Main Horlicks Acquisition.
================= ====================================================================
15 July 2020 Sold the ice cream business in Chile to Carozzi.
================= ====================================================================
1 October 2020 Acquired Liquid IV, a US-based health-science nutrition
and wellness company, known for its portfolio of electrolyte
drink mixes that enhance rapid hydration. This acquisition
increases our presence in functional nutrition.
================= ====================================================================
23 December Acquired SmartyPants Vitamins, a vitamin, mineral and supplement
2020 company based in the US. The acquisition complements Unilever's
existing portfolio in functional nutrition.
================= ====================================================================
The Main Horlicks Acquisition
The Main Horlicks Acquisition was composed of the following
related transactions on 1 April 2020:
-- Hindustan Unilever Limited (HUL), a subsidiary of the Group,
obtained control of the business of GlaxoSmithKline Consumer
Healthcare Limited (GSKCH) via an all equity merger under which
4.39 shares of HUL were allotted for every share of GSKCH;
-- HUL purchased the Horlicks intellectual property rights,
being mainly legal rights to the Horlicks brand (the 'HFD IP') for
India and Unilever N.V. and Unilever PLC purchased the HFD IP
outside of India and Bangladesh (subsequently the Bangladesh HFD IP
was acquired by Unilever PLC in a separate transaction); and
-- Unilever Foods (Malaysia) Sdn Bhd and Unilever Asia Pacific
Limited (Singapore) purchased the Horlicks commercial operations of
GSK in 20 other predominantly Asian markets ("Local Distribution
Assets").
The total consideration paid was EUR5,294 million comprised of
EUR449 million in cash and EUR4,845 million in shares of Hindustan
Unilever Limited valued based on the share price of HUL on the
completion date and the exchange rate on the same date (83.05
INR/EUR). The provisional fair value of net assets for the
acquisition that is recognised on the balance sheet is EUR3,204
million. Balances are provisional as we are finalising our review
of the asset valuations. More information related to each major
class of assets and liabilities acquired is provided on page
23.
At the date of acquisition we expected around EUR1.3 billion of
the goodwill to be deductible for tax purposes. While we believe
there is a legal basis to claim the Horlicks goodwill as tax
deductible, we note that the Indian Budget on 1 February 2021
includes a proposal to exclude goodwill from the definition of tax
depreciable assets effective 1 April 2020. If enacted this would
have no material impact on the income statement.
The gross contractual value of trade and other receivables as at
the dates of acquisition amounted to EUR77 million which is
expected to be fully recoverable.
Within the acquired net assets, contingent liabilities amounting
to EUR123 million in respect of ongoing litigation against
GlaxoSmithKline Consumer Healthcare Limited have been recognised
based on management's estimate of the values of exposures and their
assessment of the probability of the related claims being settled
by the Group. The contingent liabilities mainly relate to direct
and indirect tax disputes with the Indian tax authorities. There
are several matters being disputed and in each case we believe that
the likelihood that the Indian tax authorities will ultimately
prevail is no higher than moderate, however we expect that most of
these disputes will not be resolved for several years. Contingent
assets of EUR73 million are also recognised, measured on the same
basis, for the Group's right to future indemnification by
GlaxoSmithKline Pte Limited and Horlicks Limited in relation to
certain claims.
Impact of dilution of Group interest in Hindustan Unilever
Limited
The acquisition of GSKCH by HUL was settled through the issue of
184.6 million new shares of Hindustan Unilever Limited and so
resulted in dilution of Unilever's interest in Hindustan Unilever
Limited from 67.2% to 61.9%. The table below shows the impact of
the decrease in shareholding on the equity attributable to
shareholders of the Group.
EUR million
================================================================
67.2% share of HUL's net assets acquired before acquisition
of GSKCH 718
61.9% share of HUL's net assets acquired after acquisition
of GSKCH 661
===========
Loss recognised in equity due to dilution (57)
Gain arising from proportionate share of GSKCH's net assets
acquired 3,001
===========
Net gain arising from the Main Horlicks Acquisition recognized
in equity 2,944
===========
Acquisition-related costs of EUR42 million have been recorded
within non-underlying items in the consolidated income statement
for 2020 (2019: EUR12 million). Total costs relating to the
issuance of shares amounting to EUR5 million have been recognised
against equity by Hindustan Unilever Limited.
The Main Horlicks Acquisition contributed EUR415 million to
Group turnover and EUR119 million to Group operating profit since
the acquisition date. If the acquisition had taken place at the
beginning of the year, Group turnover would have been EUR50,867
million and Group operating profit would have been EUR8,342
million.
Impact of all acquisitions
The overall impact of the Main Horlicks Acquisition and the
other acquisitions on the consolidated income statement and
consolidated balance sheet is as follows:
Effect on consolidated income statement
The acquisition deals completed in 2020 have contributed EUR476
million to Group revenue and EUR124 million to Group operating
profit since the relevant acquisition dates. If the acquisition
deals completed in 2020 had all taken place at the beginning of the
year, Group revenue would have been EUR51,116 million and Group
operating profit would have been EUR8,371 million.
Effect on consolidated balance sheet
The following table summarises the consideration and net assets
acquired for the Group's Main Horlicks Acquisition and other
acquisitions. The fair values currently used for opening balances
of all acquisitions made in 2020 are provisional. Balances remain
provisional due to missing relevant information about facts and
circumstances that existed as of the acquisition date and where
valuation or review work is still ongoing.
Main Horlicks Other Total
Acquisition acquisitions 2020
EUR million EUR million EUR million
=============================================== ============= ==============
Intangible assets 3,345 737 4,082
Other non-current assets 249 35 284
Trade and other receivables 77 26 103
Other current assets(a) 560 95 655
Non-current liabilities(b) (905) (202) (1,107)
Current liabilities (122) (38) (160)
============= ============== =============
Net assets acquired 3,204 653 3,857
Non-controlling interest - (27) (27)
Goodwill 2,090 417 2,507
Exchange rate gain/(loss) on cash flow hedges - - -
============= ============== =============
Total consideration 5,294 1,043 6,337
Of which:
Consideration paid 5,294 1,019 6,313
Deferred consideration - 24 24
============= ============== =============
(a) Other current assets include financial assets of EUR463
million and cash of EUR36 million related to the Main Horlicks
Acquisition.
(b) Non-current liabilities include deferred tax of EUR746
million related to the Main Horlicks Acquisition.
No material contingent liabilities were acquired in the other
acquisitions described above.
9 FINANCIAL INSTRUMENTS
The Group's Treasury function aims to protect the Group's
financial investments, while maximising returns. The fair value of
financial assets is the same as the carrying amount for 2020 and
2019. The Group's cash resources and other financial assets are
shown below.
31 December 2020 31 December 2019
=====================================
EUR million Current Non-current Total Current Non-current Total
===================================== ======= ============ ===== ======= ============ =====
Cash and cash equivalents
Cash at bank and in hand 2,764 - 2,764 2,457 - 2,457
Short-term deposits(a) 2,764 - 2,764 1,693 - 1,693
Other cash equivalents 20 - 20 35 - 35
======= ============ ===== ======= ============ =====
5,548 - 5,548 4,185 - 4,185
======= ============ ===== ======= ============ =====
Other financial assets
Financial assets at amortised
cost(b) 468 138 606 578 220 798
Financial assets at fair
value through other comprehensive
income(c) 9 361 370 - 266 266
Financial assets at fair
value through profit or
loss:
Derivatives 59 21 80 20 114 134
Other(d) 272 356 628 309 274 583
======= ============ ===== ======= ============ =====
808 876 1,684 907 874 1,781
======= ============ ===== ======= ============ =====
Total financial assets(e) 6,356 876 7,232 5,092 874 5,966
======= ============ ===== ======= ============ =====
(a) Short-term deposits typically have maturity of up to 3
months.
(b) Current financial assets at amortised cost include short
term deposits with banks with maturities longer than three months
excluding deposits which are part of a recognised cash management
process and loans to joint venture entities. Non-current financial
assets at amortised cost include judicial deposits of EUR101
million (2019: EUR136 million).
(c) Included within non-current financial assets at fair value
through other comprehensive income are equity investments of EUR356
million
(2019: EUR244 million).
(d) Included within current financial assets at fair value
through profit or loss are highly liquid debt mutual funds.
Included within non-current financial assets at fair value through
profit or loss are assets in a trust to fund benefit obligations in
the US, option over non-controlling interest in a subsidiary in
Hong Kong and investments in a number of companies and financial
institutions in North America, North Asia, South Asia and
Europe.
(e) Financial assets exclude trade and other current
receivables.
The Group is exposed to the risks of changes in fair value of
its financial assets and liabilities. The following tables
summarise the fair values and carrying amounts of financial
instruments and the fair value calculations by category.
EUR million Fair value Carrying amount
======================================== -------------------- --------------------
As at 31 As at 31 As at 31 As at 31
December December December December
2020 2019 2020 2019
======================================== ========= ========= ========= =========
Financial assets
Cash and cash equivalents 5,548 4,185 5,548 4,185
Financial assets at amortised cost 606 798 606 798
Financial assets at fair value through
other comprehensive income 370 266 370 266
Financial assets at fair value through
profit and loss:
Derivatives 80 134 80 134
Other 628 583 628 583
7,232 5,966 7,232 5,966
Financial liabilities
Bank loans and overdrafts (411) (853) (411) (853)
Bonds and other loans (26,936) (26,525) (24,585) (25,032)
Lease liabilities (1,771) (1,919) (1,771) (1,919)
Derivatives (315) (270) (315) (270)
Other financial liabilities (223) (183) (223) (183)
(29,656) (29,750) (27,305) (28,257)
========= ========= ========= =========
EUR million Level Level Level Level Level Level
1 2 3 1 2 3
------ ------ ----- ------ ------ -----
As at 31 December As at 31 December
2020 2019
======================================= ===================== =====================
Assets at fair value
Financial assets at fair value through
other comprehensive income 5 3 362 7 4 255
Financial assets at fair value through
profit or loss:
Derivatives (a) - 158 - - 208 -
Other 300 - 328 311 - 272
Liabilities at fair value
Derivatives (b) - (418) - - (326) -
Contingent consideration - - (140) - - (154)
====== ====== ===== ====== ====== =====
(a) Includes EUR78 million (2019: EUR74 million) derivatives,
reported within trade receivables, that hedge trading
activities.
(b) Includes EUR(103) million (2019: EUR(56) million)
derivatives, reported within trade creditors, that hedge trading
activities.
There were no significant changes in classification of fair
value of financial assets and financial liabilities since 31
December 2019. There were also no significant movements between the
fair value hierarchy classifications since 31 December 2019.
The fair value of trade receivables and payables is considered
to be equal to the carrying amount of these items due to their
short-term nature.
Calculation of fair values
The fair values of the financial assets and liabilities are
defined as the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between
market participants at the measurement date. Methods and
assumptions used to estimate the fair values are consistent with
those used in the year ended 31 December 2019.
10 DIVIDENDS
The Board has declared a quarterly interim dividend for Q4 2020
of GBP0.3760 per Unilever PLC ordinary share or EUR0.4268 per
Unilever PLC ordinary share at the applicable exchange rate issued
by WM/Reuters on 2 February 2021.
The following amounts will be paid in respect of this quarterly
interim dividend on the relevant payment date:
Per Unilever PLC ordinary share (traded on the London Stock
Exchange): GBP 0.3760
Per Unilever PLC ordinary share (traded on Euronext in
Amsterdam): EUR 0.4268
Per Unilever PLC American Depositary Receipt: US$ 0.5139
The euro and US dollar amounts above have been determined using
the applicable exchange rates issued by WM/Reuters on
2 February 2021.
US dollar cheques for the quarterly interim dividend will be
mailed on 17 March 2021 to holders of record at the close of
business on 26 February 2021.
The quarterly dividend calendar for the remainder of 2021 will
be as follows:
Announcement Ex-Dividend Record Date Payment Date
Date Date
================= ============== ============== ==============
Q4 2020 Dividend 4 February 25 February 26 February 17 March 2021
2021 2021 2021
Q1 2021 Dividend 29 April 2021 20 May 2021 21 May 2021 10 June 2021
Q2 2021 Dividend 22 July 2021 5 August 2021 6 August 2021 8 September
2021
Q3 2021 Dividend 21 October 4 November 5 November 1 December
2021 2021 2021 2021
============== ============== ============== ==============
11 EVENTS AFTER THE BALANCE SHEET DATE
There were no material post balance sheet events other than
those mentioned elsewhere in this report.
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END
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